Net sales were $64,734,000, an increase of 4.6% from $61,909,000
reported in the first quarter of 2018.

For the J. Alexander’s/Grill restaurants, average weekly same store
sales per restaurant (1) were $118,700, a gain of 0.3% from
$118,300 reported in the first quarter of 2018. For the Stoney River
Steakhouse and Grill restaurants, average weekly same store sales per
restaurant were $84,500, up 2.2% from $82,700 posted in the first
quarter of 2018.

Income from continuing operations before income taxes was $4,146,000
for the first quarter of 2019 compared to income from continuing
operations before income taxes of $1,842,000 in the first quarter of
2018. The principal factor impacting income from continuing operations
before income taxes for the first quarter of 2018 was the quarterly
valuation of the profits interest grant with Black Knight Advisory
Services, LLC (“Black Knight”) which resulted in profits interest
expense of $1,907,000 in the first quarter of 2018. The Company also
incurred consulting fees of $244,000 in the first quarter of 2018
under its management consulting agreement with Black Knight. As
previously reported, both the management consulting agreement and the
profits interest grant are now terminated. Finally, in the first
quarter of 2018, the Company’s income from continuing operations
before income taxes was impacted by non-recurring transaction expenses
of $926,000.

On March 15, 2019, the Company used cash on hand to pay Black Knight
$705,000 representing the pro-rated 2018 consulting fee, which was
accrued in fiscal 2018.

The Company recorded net income of $3,848,000 in the first quarter of
2019 compared to net income of $1,593,000 reported in the first
quarter of 2018, which was impacted by the same factors noted above
affecting income from continuing operations. Results for the most
recent quarter included an income tax provision of $239,000 compared
to an income tax provision of $138,000 in the corresponding quarter of
2018.

The basic and diluted income per share was $0.26 for the first quarter
of 2019 compared to $0.11 for the first quarter of 2018.

Adjusted EBITDA (2) was $7,712,000 in the first quarter of
2019, down 5.4% from $8,151,000 in the first quarter of 2018.

Restaurant Operating Profit Margin (3) as a percent of net
saleswas 14.0% in the most recent quarter compared to
15.9% for the same quarter of 2018.

Cost of sales as a percentage of net sales in the first quarter 2019
was 31.7% compared to 31.1% in the first quarter of 2018.

The Company adopted Accounting Standards Codification 842, Leases, (“ASC
842”) during the first quarter of 2019. ASC 842 requires a lessee to
recognize assets and liabilities on the balance sheet for leases with
lease terms greater than 12 months and requires additional related
disclosures. The adoption of ASC 842 had a material impact on the
Company’s assets and liabilities due to the recognition of operating
lease right-of-use assets and lease liabilities on its condensed
consolidated balance sheet as of the first day of fiscal 2019, which
was the Company’s date of adoption. Additionally, the adoption
required the Company to recognize an adjustment to its opening
retained earnings for fiscal 2019 related to the impairment of the
adoption-date right-of-use asset for one of the Company’s locations
which is no longer in operation, but for which the Company remains
party to a lease agreement. However, the adoption did not have a
material effect on the Company’s condensed consolidated statement of
income and condensed consolidated statement of cash flows for the
first quarter of 2019.

(1)Average weekly same store sales per restaurant is computed by
dividing total restaurant same store sales for the period by the total
number of days all same store restaurants were open for the period to
obtain a daily sales average. The daily same store sales average is then
multiplied by seven to arrive at average weekly same store sales per
restaurant. Days on which restaurants are closed for business for any
reason other than scheduled closures on Thanksgiving and Christmas are
excluded from this calculation. Sales and sales days used in this
calculation and amounts of other “same store” figures in this release
include only those for restaurants in operation at the end of the period
which have been open for more than 18 months. Revenue associated with
reduction in liabilities for gift cards, which is recognized in
proportion to guest redemptions based on historical redemption rates and
commonly referred to as gift card breakage, is not included in the
calculation of average weekly same store sales per restaurant.Average
weekly same store sales are computed from sales amounts that have been
determined in accordance with U.S. generally accepted accounting
principles (GAAP).

(2)Please refer to the financial information accompanying this
release for our definition of and a reconciliation of the non‐GAAP
financial measure Adjusted EBITDA to net income. Management uses
Adjusted EBITDA to evaluate operating performance and the effectiveness
of its business strategies.

(3)“Restaurant Operating Profit Margin” is the ratio of Restaurant
Operating Profit, a non‐GAAP financial measure, to net sales. Please
refer to the financial information accompanying this release for our
definition of and a reconciliation of the non‐GAAP financial measure
Restaurant Operating Profit to Operating Income. Management uses
Restaurant Operating Profit to measure operating performance at the
restaurant level.

The Company’s restaurant labor and related costs as a percentage of net
sales were 30.2% in the first quarter of 2019 compared to 29.4% of net
sales in the first quarter of 2018. Other restaurant operating expenses
were 19.6% of net sales in the first quarter of 2019 compared to 19.4%
of net sales in the first quarter of 2018.

The Company’s consolidated operating income for the first quarter of
2019 was $4,266,000 compared to operating income of$2,058,000
for the first quarter of 2018.

The average weekly guest counts within the same store base of the
Company’s J. Alexander’s/Grill collection were down 1.1% in the first
quarter of 2019 compared to the first quarter of the prior year. Guest
counts within the same store base at the Company’s Stoney River
Steakhouse and Grill restaurants were up 1.2% for the first quarter of
2019 over the first quarter of 2018. With respect to average guest
checks, which include alcoholic beverage sales, the average guest check
within the J. Alexander’s/Grill same store base of restaurants during
the first quarter of 2019 was $32.36, up 1.5% from $31.89 posted during
the first quarter of 2018. The average guest check within the same store
base of Stoney River Steakhouse and Grill restaurants was $43.02 during
the first quarter of 2019, up 0.8% from $42.66 recorded in the
corresponding quarter of 2018.

On a consolidated basis, average weekly guest counts within the
Company’s J. Alexander’s/Grill locations in the first quarter of 2019
were down 2.3% from the first quarter of 2018, while average weekly
guest counts within the Company’s Stoney River Steakhouse and Grill
locations increased 3.1% for the first quarter of 2019 compared to the
first quarter of 2018. Average guest checks for the combined J.
Alexander’s/Grill concepts increased 1.5% from $31.89 in the first
quarter of 2018 to $32.37 for the most recent quarter. Average guest
checks for the Stoney River Steakhouse and Grill restaurants decreased
0.2% from $42.66 in the first quarter of 2018 to $42.59 in the first
quarter of 2019.

The effect of menu pricing for the first quarter of 2019 was estimated
to be a 0.3% increase for both the J. Alexander’s/Grill restaurants and
Stoney River Steakhouse and Grill restaurants compared to the first
quarter of 2018. Inflation in food costs for the first quarter of 2019
was estimated to total 1.9% for the J. Alexander’s/Grill restaurants,
with beef costs increasing by an estimated 5.7% compared to the first
quarter of 2018. For the Stoney River Steakhouse and Grill restaurants,
inflation for the first quarter of 2019 was estimated to total 3.2%,
with beef costs up by 7.2% from the corresponding quarter of 2018.

Stock Repurchase Program

During the fourth quarter of 2018, the Company’s board of directors
authorized a share repurchase program, replacing the program that had
been in place since October 29, 2015. The board authorized the Company
to purchase up to $15,000,000 of its common stock in the aggregate over
a three‐year period ending November 1, 2021. Share repurchases under the
newly authorized program are expected to be made solely from cash on
hand and available operating cash flow. Repurchases will be made in
accordance with applicable securities laws and may be made from time to
time in the open market. The timing, prices and amount of repurchases
will depend upon prevailing market prices, general economic and market
conditions and other considerations. The repurchase program does not
obligate the Company to acquire any amount of stock. No shares were
purchased by the Company in the first quarter of 2019.

Chief Executive Officer’s Comments

“We were generally pleased with our operational execution in the first
quarter of 2019,” said Mark A. Parkey, President and Chief Executive
Officer of J. Alexander’s Holdings, Inc. “We delivered positive same
store sales in both concepts while working aggressively to build traffic
at a selected number of our newer J. Alexander’s/Grill restaurants.”

During the first quarter of 2019, Parkey said the Company’s restaurants
were again impacted by harsh winter weather, particularly in Midwestern
markets. He said severe conditions resulted in the Company temporarily
closing restaurants for a total of 14 days. This represented lost
revenue of approximately $175,000 during the first quarter of 2019.
During the same period in 2018, however, restaurants were closed for 27
days as a result of weather conditions, which accounted for an estimated
loss of revenue of $400,000.

Parkey said beef prices through the first quarter of 2019 were higher
than the same quarter a year earlier. “This increase, while manageable,
was primarily responsible for the increase in cost of sales,” he noted.
“Recent flooding in the Midwest also raises concern that beef prices
could rise later in the year, although we do not see any specific
evidence of that at the present time.”

Parkey said that the Company is continuing to closely monitor guest
traffic trends across all locations. “We continue to see new restaurants
opening in many of our markets and, while such openings have
historically not presented long-term issues, they have the potential to
generate short-term trial in selected locations. While we are always
cautious about taking a price increase in the face of such competition
for traffic, we anticipate that we have room to implement a modest price
increase during the second quarter at selected restaurants.

“In summary,” he added, “we continue to see strength in and solid
performance from many of our mature J. Alexander’s/Grill and Stoney
River restaurants. We also have been monitoring the metrics of our new
restaurant performance and are generally encouraged by trends in certain
J. Alexander’s/Grill locations during the first four months of 2019.”

Restaurant Development

During the first quarter of 2019, the Company announced the signing of a
lease to open a new J. Alexander’s/Grill restaurant in Houston, TX.
Construction is underway with an opening currently scheduled for the
fourth quarter of 2019. On April 29, 2019, the Company announced the
signing of a lease to open a new Redlands Grill in San Antonio, TX
which, due to unique site development requirements, will now be
scheduled for opening in fiscal 2020.

Outlook For 2019/Guidance

The Company’s performance outlook is based on current information as of
May 1, 2019. The Company does not expect to update its 2019 guidance
before the next quarter’s earnings release. However, the information on
which the outlook is based is subject to change, and the Company may
update its full business outlook or any portion thereof at any time for
any reason.

Based upon current information, the guidance for the 2019 fiscal year is
the same as reported on March 11, 2019 in all areas except for capital
expenditures, which are now estimated to range from $14,000,000 -
$16,000,000 (down from $19,000,000 - $21,000,000 as of March 11, 2019)
based on the revised fiscal 2020 opening date of the San Antonio
Redlands Grill.

Conference Call

The Company will hold a conference call on Thursday, May 2, 2019, at 10
a.m., Central Time, to discuss its financial results for the first
quarter ended March 31, 2019. The conference call can be accessed live
over the phone by dialing 1-877-407-0789 (Toll Free) or 1-201-689-8562
(Toll/International). To access the call via the internet, go to J.
Alexander’s website at http://investor.jalexandersholdings.com
or http://public.viavid.com/index.php?id=134035.
A replay of the conference call will be available shortly following the
conclusion of the call (beginning at 1 p.m. Central Time) at http://investor.jalexandersholdings.com
and http://public.viavid.com/index.php?id=134035,
as well as by dialing 1-844-512-2921 (Toll Free) or 1-412-317-6671 and
entering access code 13689692. The replay will be accessible through May
9, 2019 via telephone, and for 30 days on the internet.

About J. Alexander’s Holdings, Inc.

J. Alexander’s Holdings, Inc. is a collection of restaurants that focus
on providing high quality food, outstanding professional service and an
attractive ambiance. The Company presently operates 46 restaurants in 16
states. The Company has its headquarters in Nashville, TN.

This press release issued by J. Alexander’s Holdings, Inc. contains
forward‐looking statements, which include all statements that do not
relate solely to historical or current facts, such as statements
regarding our expectations, intentions or strategies regarding the
future. These forward‐looking statements are based on management's
beliefs, as well as assumptions made by, and information currently
available to, management. Because such statements are based on
expectations as to future financial and operating results and are not
statements of fact, actual results may differ materially from those
projected and are subject to a number of known and unknown risks and
uncertainties, including the Company’s ability to maintain satisfactory
guest count levels and maintain or increase sales and operating margins
in its restaurants under varying economic conditions; the effect of
higher commodity prices, unemployment and other economic factors on
consumer demand; increases in food input costs or product shortages and
the Company’s response to them; the number and timing of new restaurant
openings and the Company’s ability to operate them profitably;
competition within the casual dining industry and within the markets in
which our restaurants are located; adverse weather conditions in regions
in which the Company’s restaurants are located; factors that are under
the control of third parties, including government agencies; as well as
other risks and uncertainties described under the headings
"Forward‐Looking Statements," "Risk Factors" and other sections of the
Company’s Annual Report on Form 10‐K filed with the Securities and
Exchange Commission on March 14, 2019 and subsequent filings. The
Company undertakes no obligation to update any forward‐looking
statements, whether as a result of new information, future events or
otherwise.

J. Alexander's Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Unaudited in thousands, except per share amounts)

Quarter Ended

March 31,

April 1,

2019

2018

Net sales

$

64,734

$

61,909

Costs and expenses:

Cost of sales

20,528

19,261

Restaurant labor and related costs

19,550

18,226

Depreciation and amortization of restaurant property and equipment

2,929

2,569

Other operating expenses

12,684

12,018

Total restaurant operating expenses

55,691

52,074

Transaction and integration expenses

-

926

General and administrative expenses

4,756

6,525

Pre-opening expense

21

326

Total operating expenses

60,468

59,851

Operating income

4,266

2,058

Other income (expense):

Interest expense

(186

)

(174

)

Other, net

66

(42

)

Total other expense

(120

)

(216

)

Income from continuing operations before income taxes

4,146

1,842

Income tax expense

(239

)

(138

)

Loss from discontinued operations, net

(59

)

(111

)

Net income

$

3,848

$

1,593

Basic earnings per share:

Income from continuing operations, net of tax

$

0.27

$

0.12

Loss from discontinued operations, net

(0.00

)

(0.01

)

Basic earnings per share

$

0.26

$

0.11

Diluted earnings per share:

Income from continuing operations, net of tax

$

0.27

$

0.11

Loss from discontinued operations, net

(0.00

)

(0.01

)

Diluted earnings per share

$

0.26

$

0.11

Weighted average common shares outstanding:

Basic

14,695

14,695

Diluted

14,695

14,838

J. Alexander's Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Income Data as a Percentage
of Net Sales and

Other Financial and Performance Data (Unaudited)

Quarter Ended

March 31,

April 1,

2019

2018

Net sales

100.0

%

100.0

%

Costs and expenses:

Cost of sales

31.7

31.1

Restaurant labor and related costs

30.2

29.4

Depreciation and amortization of restaurant property and equipment

4.5

4.1

Other operating expenses

19.6

19.4

Total restaurant operating expenses

86.0

84.1

Transaction and integration expenses

-

1.5

General and administrative expenses

7.3

10.5

Pre-opening expense

0.0

0.5

Total operating expenses

93.4

96.7

Operating income

6.6

3.3

Other income (expense):

Interest expense

(0.3

)

(0.3

)

Other, net

0.1

(0.1

)

Total other expense

(0.2

)

(0.3

)

Income from continuing operations before income taxes

6.4

3.0

Income tax expense

(0.4

)

(0.2

)

Loss from discontinued operations, net

(0.1

)

(0.2

)

Net income

5.9

%

2.6

%

Note: Certain percentage totals do not sum due to rounding.

Other Financial and Performance Data:

Adjusted EBITDA(1)

$

7,712

$

8,151

As a % of net sales

11.9

%

13.2

%

Average weekly sales per restaurant:

J. Alexander’s / Grill Restaurants

$

117,300

$

118,300

Percent change

-0.8

%

Stoney River Steakhouse and Grill

$

85,200

$

82,700

Percent change

3.0

%

Average weekly same store sales per restaurant:

J. Alexander’s / Grill Restaurants

$

118,700

$

118,300

Percent change

0.3

%

Stoney River Steakhouse and Grill

$

84,500

$

82,700

Percent change

2.2

%

(1) See definitions and reconciliation attached.

J. Alexander's Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited in thousands)

March 31,

December 30,

2019

2018

Assets

Current assets:

Cash and cash equivalents

$

6,692

$

8,783

Other current assets

7,390

8,682

Total current assets

14,082

17,465

Other assets

5,487

5,557

Deferred income taxes

1,278

539

Property and equipment, net

107,980

109,332

Right-of-use lease assets

73,390

-

Goodwill

15,737

15,737

Tradename and other indefinite-lived intangibles

25,647

25,647

Deferred Charges, net

258

272

$

243,859

$

174,549

Liabilities and Stockholders' Equity

Current liabilities

$

29,469

$

33,778

Long-term debt, net of portion classified as current and
unamortized deferred loan costs

4,632

5,866

Long-term lease liabilities

78,941

-

Deferred compensation obligations

6,262

6,251

Other long-term liabilities

9

6,995

Stockholders' equity

124,546

121,659

$

243,859

$

174,549

J. Alexander's Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited in thousands)

Quarter Ended

March 31,

April 1,

2019

2018

Cash flows from operating activities:

Net income

$

3,848

$

1,593

Adjustments to reconcile net income to net cash provided by
operating activities:

Depreciation and amortization of property and equipment

2,993

2,642

Equity-based compensation expense

296

2,140

Other, net

(394

)

(156

)

Changes in assets and liabilities, net

(5,874

)

621

Net cash provided by operating activities

869

6,840

Cash flows from investing activities:

Purchase of property and equipment

(1,614

)

(6,177

)

Other investing activities

(90

)

(4

)

Net cash used in investing activities

(1,704

)

(6,181

)

Cash flows from financing activities:

Payments on long-term debt

(1,250

)

(1,250

)

Other financing activities

(6

)

-

Net cash used in financing activities

(1,256

)

(1,250

)

Decrease in cash and cash equivalents

(2,091

)

(591

)

Cash and cash equivalents at beginning of the period

8,783

10,711

Cash and cash equivalents at end of the period

$

6,692

$

10,120

Supplemental disclosures:

Property and equipment obligations accrued at beginning of the period

$

819

$

1,854

Property and equipment obligations accrued at end of the period

869

701

Cash paid for interest

171

197

Cash paid for income taxes

27

166

J. Alexander's Holdings, Inc. and Subsidiaries

Non-GAAP Financial Measures and Reconciliations

(Unaudited in thousands)

Non-GAAP Financial Measures

Within this press release, we present the following non-GAAP financial
measures which we believe are useful to investors as key measures of our
operating performance.

We define Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization, or “Adjusted EBITDA”, as net income before interest
expense, income tax expense, depreciation and amortization, and adding
asset impairment charges and restaurant closing costs, loss on disposals
of fixed assets, transaction and integration costs, non-cash
compensation, loss from discontinued operations and pre-opening costs.

Adjusted EBITDA is a non-GAAP financial measure that we believe is
useful to investors because it provides information regarding certain
financial and business trends relating to our operating results and
excludes certain items that are not indicative of our operations.
Adjusted EBITDA does not fully consider the impact of investing or
financing transactions as it specifically excludes depreciation and
interest charges, which should also be considered in the overall
evaluation of our results of operations.

We define “Restaurant Operating Profit” as net sales less restaurant
operating costs, which are cost of sales, restaurant labor and related
costs, depreciation and amortization of restaurant property and
equipment, and other operating expenses. Restaurant Operating Profit is
a non-GAAP financial measure that we believe is useful to investors
because it provides a measure of profitability for evaluation that does
not reflect corporate overhead and other non-operating or unusual costs.
“Restaurant Operating Profit Margin” is the ratio of Restaurant
Operating Profit to net sales.

Our management uses Adjusted EBITDA and Restaurant Operating Profit to
evaluate the effectiveness of our business strategies. We caution
investors that amounts presented in accordance with the above
definitions of Adjusted EBITDA or Restaurant Operating Profit may not be
comparable to similar measures disclosed by other companies, because not
all companies calculate these non-GAAP financial measures in the same
manner. Adjusted EBITDA and Restaurant Operating Profit should not be
assessed in isolation from, or construed as a substitute for, net
income, operating income or other measures presented in accordance with
GAAP.

A reconciliation of these non-GAAP financial measures to the closest
GAAP measure is set forth in the following tables:

Quarter Ended

March 31,

April 1,

2019

2018

Net income

$

3,848

$

1,593

Income tax expense

239

138

Interest expense

186

174

Depreciation and amortization

3,008

2,653

EBITDA

7,281

4,558

Transaction and integration expenses

-

926

Loss on disposal of fixed assets

23

58

Asset impairment charges and restaurant closing costs

-

(2

)

Non-cash compensation

328

2,174

Loss from discontinued operations, net

59

111

Pre-opening expense

21

326

Adjusted EBITDA

$

7,712

$

8,151

Note: For purposes of computing Adjusted EBITDA, the $0 and $1,907 for
the quarters ended March 30, 2019 and April 1, 2018, respectively, in
non-cash compensation associated with a profits interest grant issued to
Black Knight Advisory Services, LLC ("BKAS") on October 6, 2015 has been
included in "Non-cash compensation" above. Additional expenses
associated with the Company's now terminated management agreement with
BKAS totaling $0 and $244 for the quarters ended March 30, 2019 and
April 1, 2018, respectively, are included in general and administrative
expenses and have not been included in the reconciliation set forth
above. The management agreement was terminated during the fourth quarter
of 2018 as disclosed in the Company's Current Report on Form 8-K filed
with the Securities and Exchange Commission on November 30, 2018.